Dr Christopher Kent, Assistant Governor of the Reserve Bank of Australia (RBA), gave an interesting speech in Canberra yesterday, which noted trends in dwelling supply across the country, including the sharp reduction in the supply of greenfield land across Australia’s capitals:
Dwelling construction is typically the most interest-rate sensitive component of expenditure in the Australian economy. It is growing strongly in response to low interest rates, rising by about 9 per cent over the past year (Graph 2).
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
